As first reported by ABC Australia, a confidential government audit has exposed how travel management companies have, in some cases, quietly pocketed tens of millions of dollars through hidden commissions and undisclosed mark-ups — practices that have now engulfed Corporate Travel Management in an international scandal.
Brisbane-based Corporate Travel Management (CTM), one of Australia’s largest travel providers and a company valued at more than $2 billion, confirmed it will refund up to £77.6 million ($157 million) to UK customers after uncovering years of overbilling. The revelations have triggered an urgent investigation by the British Home Office and prompted an Australian Government investigation into CTM’s conduct and contractual compliance, given its role as the sole provider of travel management services to federal agencies.
The company, which handles bookings for major clients including Wesfarmers, the Australian Government, and the UK’s refugee accommodation network, said the billing problems date back to 2021. CTM has declined to explain how the overcharging occurred or whether it suspects criminal conduct, describing the issue only as “serious” but confined to the UK. Its shares have been suspended since August as auditors scrutinise its accounts.
Secret QTravel Audit Exposes Systemic Vulnerabilities
Documents obtained by ABC Australia under Right to Information laws reveal that concerns about overcharging in the corporate travel sector extend far beyond CTM.
A June 2022 audit of the Queensland Government’s QTravel program outlines a catalogue of ways travel management companies can exploit clients — often without detection.
The review, conducted by consultants Butler Caroye and Goldspring, found that TMCs routinely earn confidential commissions from airlines, hotels and car rental firms. Although clients typically require these commissions to be returned in full, the audit said “getting the commissions owed is very difficult and usually reverts to a matter of trust.”
One case uncovered by consultants involved an eight-figure underpayment after a travel provider adopted a narrow interpretation of what “commission” meant under its contract.
Another example highlighted how a major business discovered its TMC had been applying undisclosed mark-ups on international airfares for five years. The matter was settled out of court, with the travel company paying compensation in the tens of millions.
The audit also warned that TMCs may manipulate hotel bookings by making cheaper net rates appear unavailable, instead steering clients toward higher-priced rooms that generate commissions.
“We are not suggesting that all travel management companies chase commissions through up-selling,” the review noted. “But it certainly does occur due to the difficulty of prevention.”
Escalating Scrutiny in the UK and Australia
The UK Home Office confirmed it was notified last month that CTM had overbilled government departments.
“An urgent investigation is underway into this appalling overspend, which happened under the previous government. All taxpayer money owed will be recovered,” a spokesperson said.
In Australia, CTM’s admission of widespread overbilling has raised concerns within federal agencies that rely on the company for travel management. Senior officials confirmed that an Australian Government investigation has commenced, examining whether similar practices occurred domestically and whether CTM fulfilled its contractual obligations to return commissions and avoid hidden mark-ups.
CTM has secured a series of sensitive contracts in both countries, including COVID-19 repatriation operations, management of an asylum-seeker barge program in the UK, and travel services across the Australian public sector
Travel Industry Under Pressure to Reform
The Australian Travel Industry Association, which represents agents including CTM, insisted it remains committed to “upholding a fair, transparent, and consumer-focused travel industry,” with accreditation requirements covering financial, ethical and professional standards.
But the Queensland audit paints a picture of an industry where opaque commissions, complex supply arrangements, and weak oversight enable questionable practices to flourish.
One anecdote from the audit captures the simmering frustration: a bank, fed up with unacceptable booking times and sluggish responses, summoned its travel managers to a boardroom meeting — then served them cold coffee to demonstrate the poor quality of service staff were experiencing.
With concurrent investigations now underway in both Australia and the UK, CTM faces unprecedented scrutiny, and the broader corporate travel sector may soon be forced into reforms long considered overdue.
